Case Law Details
Utkrisht Logistics Vs State of Bihar (Patna High Court)
Patna HC grants 30 Days for Returns Filing Post GST Registration cancellation Revocation
In the case of Utkrisht Logistics Vs State of Bihar, the Patna High Court addressed the issue of revocation of GST registration due to unfiled returns. The petitioner challenged the order refusing to cancel the revocation based on the non-filing of GST returns. The court examined the relevant provisions of the Central Goods and Services Tax (CGST) Rules, particularly focusing on Rule 23, which outlines the procedure for the revocation of cancellation. It was highlighted that under the second and third provisos to Rule 23, an application for revocation cannot be filed until the registered person has submitted all returns that led to the cancellation. Additionally, for revocation with retrospective effect, the fourth proviso specifies that returns must be submitted within 30 days from the order of revocation.
The court concluded that since the petitioner’s GST registration was cancelled retroactively from April 1, 2023, they were entitled to a 30-day period to file all pending returns following the revocation of the cancellation order. As a result, the court set aside the refusal to cancel the revocation and directed the Assessing Officer to allow the petitioner to submit their returns within the specified timeframe. The ruling emphasized the necessity of reopening the taxpayer’s portal to facilitate the filing process. Importantly, the court clarified that failure to file the required returns within the 30-day period would result in the sustained cancellation of registration. This decision reinforces the importance of compliance with GST regulations and the rights of taxpayers in the context of filing returns post-revocation.
Utkrisht Logistics Vs State of Bihar (Patna High Court)
Patna HC grants 30 Days for Returns Filing Post GST Registration cancellation Revocation
FULL TEXT OF THE JUDGMENT/ORDER OF PATNA HIGH COURT
The petitioner is aggrieved with Annexure- P/6 order which refused to cancel the order of revocation for reason of all pending returns having not been filed. The order of cancellation is at Annexure- P/2, which is dated 29.01.2024 and the effective date of cancellation was as on 01.04.2023; a retrospective date.
2. Specific reference is made by the learned Counsel for the petitioner to Rule 23 of the Central Goods and Services Tax Rules, 2017 (for brevity, CGST Rules) which delineates a procedure for revocation of cancellation, as is provided under Section 30 of the CGST Act.
3. The second proviso to Rule 23 mandates that no application for revocation shall be filed unless the registered person has furnished the returns; the failure to furnish which, had led to the cancellation. The third proviso also requires the registered person to file the returns from the date of order of cancellation to the date of order of revocation; once the revocation is made under Section 30 of the CGST Act.
4. Since the petitioner’s registration has been cancelled with retrospective effect from 01.04.2023, what is applicable to the petitioner is the fourth proviso to Rule 23 which is extracted here under.
“Provided also that where the registration has been cancelled with retrospective effect, the registered person shall furnish all returns relating to period from the effective date of cancellation of registration till the date of order of revocation of cancellation of registration with a period of thirty days from the date of order of revocation of cancellation of registration.”
5. As per the above proviso, when retrospective effect is given to the cancellation order; on a revocation application being filed, the registered person would be obliged to file the returns relating to the period from the effective date of cancellation of registration, till the date of order of revocation of cancellation of registration, only within a period of thirty days from the date of order of revocation of cancellation of registration.
6. In such circumstances, Annexure- P/6 is set aside and the Assessing Officer is directed to revoke the cancellation and give the petitioner, the time provided under the fourth proviso to Rule 23 for filing the returns.
7. If the petitioner does not file the returns from 1.4.2023 to the date of revocation, within 30 days of the revocation, then the cancellation would stand sustained.
8. We make it clear that on the revocation being cancelled, necessarily, the portal of the petitioner has to be opened, so as to facilitate filing returns within the time provided.
9. The writ petition stands allowed.
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